• Advertise
  • Submit a Press Release
  • About Us
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Play FinanceTry
  • Claim 7 BTCTry
No Result
View All Result
Breaking News: Bitfinex And Crypto Bank OrionX Forged Partnership To Broaden Presence In Latin America
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Play FinanceTry
  • Claim 7 BTCTry
No Result
View All Result
Bitcoin News
No Result
View All Result
Breaking News: Bitfinex And Crypto Bank OrionX Forged Partnership To Broaden Presence In Latin America
japan

Japan to Focus Cryptocurrency Regulation on Speculative Investments

Ricardo Esteves by Ricardo Esteves
5 years ago
in Uncategorized
Reading Time: 2 mins read

The Financial Services Agency, the government agency that oversees banking, securities, and exchange services in Japan, plans to set up stricter requirements on cryptocurrencies and its use for speculative purposes.

Japan Regulator May Impose Cap on Cryptocurrency Trading Leverage

Bitcoin and other cryptocurrencies have mainly become tools for speculative investment in recent months. Recently, a DEA agent explained that around 90% of all Bitcoin moving between wallets used to be associated with crimes. The number has fallen dramatically to 10% with the rise of the virtual currency market, particularly in late 2017, as investors and traders entered the space with fear of missing out on the new and trendy asset class.

The five largest cryptocurrencies were responsible for a trading volume of ¥69 trillion in fiscal 2017 in Japan, with users reaching 3.5 million. Instead of using virtual coins for payments, the Japanese mostly traded in search of profit, a senior official of a major cryptocurrency exchange told Japan Times.

“Young users who had previously no connection (with cryptocurrencies) have increased at a breathless pace.”

Margin trading is behind the cryptocurrency trading explosion in Japan as investors are offered leverage by online trading companies in order to seek higher exposure while having little capital. The virtual currency market has no leverage cap, unlike the Forex market which is limited to 25:1 leverage in Japan. This is due to being outside the Financial Instruments and Exchange Act. The market is also exempt from regulatory requirements covering anti-insider trading and other issues the financial services industry is subject to.

What the FSA now recognizes is that they mostly focused on payments and remittances for their cryptocurrency regulation via the revised the Payment Services Act in April 2017. These security measures for the cryptocurrency space don’t cover the use of virtual currencies as speculative investment assets.

Japan FSA Concerned Over Future Cryptocurrency Exchange Hacks

Contrary to the FSA’s expectations, the Japanese people, as well as the rest of the world, found the cryptocurrency market as an investment opportunity, not only by simply holding Bitcoin et al. but also through investing in initial coin offerings that have become popular since 2017. The Coincheck hack in January 2018 also exposed the vulnerabilities of exchange operators in Japan. Instead of focusing on payments, regulation must be set up to protect investors in the cryptocurrency space, an expert told Japan Times.

“Virtual currencies should be positioned as assets for investment, while a legal system to protect investors needs to be established as a matter of urgency.”

The Financial Services Agency set up a working group in April 2018 to make corrections to the current regulation in order to focus on the actual practice of the market, including margin trading and insider trading.

 

Image from Shutterstock
Tags: CoincheckFinancial Services AgencyfsaInsider TradingjapanleverageMargin tradingregulation
Tweet123Share196ShareSend
Ricardo Esteves

Ricardo Esteves

Related Posts

Best Baccarat Online Casinos – Online Baccarat for Real Money

Best Baccarat Online Casinos – Online Baccarat for Real Money

3 hours ago
Optimism

Bedrock Upgrade: How Optimism Game-Changer Could Impact OP Price

7 hours ago
Quant Hype Spikes As Price Surges 15%, Is This A Top Signal?

Quant Hype Spikes As Price Surges 15% – Is This A Top Signal?

23 hours ago
XR[

XRP Climbs 12% As Crypto Celebrates 11-Year Milestone

23 hours ago
ARB

Whale’s ARB Accumulation Rekindles Momentum For DeFi Token – Here’s Why

1 day ago
Injective Protocol (INJ) Tallies 23% Price Surge in the Past 7 Days. Here's Why

Injective Protocol (INJ) Tallies 23% Price Surge In Past 7 Days – Here’s Why

1 day ago

Premium Partners

Play Finance

Now Trending

  • Potential 20x+ Crypto Presales 2023

    4 days ago
  • Willing to buy new crypto: Here are the best 10...

    4 days ago
  • Best Crypto Meme Coin Presales in 2023

    4 days ago

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
mBit

mBit

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

  • According to experienced traders, Aave (AAVE) and InQubeta...

    3 hours ago
  • Avalanche price at important support level, Quant price to...

    4 hours ago
  • Looking for the next Crypto That Could 100x? Check...

    4 hours ago
  • Tradecurve (TCRV) Presale Bonus Attracts More Investors As...

    5 hours ago
  • XRP and Big Eyes Coin (BIG): Riding the FOMO Wave in the...

    5 hours ago

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2023 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Claim 7 BTC

© 2023 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.